Correlation Between TESSCO Technologies and BK Technologies
Can any of the company-specific risk be diversified away by investing in both TESSCO Technologies and BK Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TESSCO Technologies and BK Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TESSCO Technologies Incorporated and BK Technologies, you can compare the effects of market volatilities on TESSCO Technologies and BK Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TESSCO Technologies with a short position of BK Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TESSCO Technologies and BK Technologies.
Diversification Opportunities for TESSCO Technologies and BK Technologies
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TESSCO and BKTI is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding TESSCO Technologies Incorporat and BK Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK Technologies and TESSCO Technologies is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TESSCO Technologies Incorporated are associated (or correlated) with BK Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK Technologies has no effect on the direction of TESSCO Technologies i.e., TESSCO Technologies and BK Technologies go up and down completely randomly.
Pair Corralation between TESSCO Technologies and BK Technologies
If you would invest 2,630 in BK Technologies on September 2, 2024 and sell it today you would earn a total of 688.00 from holding BK Technologies or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
TESSCO Technologies Incorporat vs. BK Technologies
Performance |
| Timeline |
| TESSCO Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BK Technologies |
TESSCO Technologies and BK Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TESSCO Technologies and BK Technologies
The main advantage of trading using opposite TESSCO Technologies and BK Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TESSCO Technologies position performs unexpectedly, BK Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BK Technologies will offset losses from the drop in BK Technologies' long position.| TESSCO Technologies vs. Mynaric AG ADR | TESSCO Technologies vs. Knowles Cor | TESSCO Technologies vs. Comtech Telecommunications Corp | TESSCO Technologies vs. Ituran Location and |
| BK Technologies vs. Frequency Electronics | BK Technologies vs. Actelis Networks | BK Technologies vs. Optical Cable | BK Technologies vs. Baylin Technologies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |